Companies doing business in four US states must purchase state-issued workers’ compensation policies that do not include employer liability. If your company is located in one of them, a gap insurance policy protects you from legal costs associated with liability claims.

North Dakota

The North Dakota Workforce Safety and Insurance Agency is responsible for covering workers injured on the job, and does not allow self-insurance. Employers must apply for a policy through the Employer Services Division on the NDWSI website.


Those doing business in the Buckeye State must purchase a workers’ compensation policy through the Ohio Bureau of Workers’ Compensation. The state offers discounts and the option for self-insurance to those companies with enough experience.


A business employing one or more workers in Washington state must apply for coverage through the Washington State Department of Labor and Industries. It allows only large companies worth $25 million or more to self-insure.


The Wyoming Department of Workforce Services requires all businesses to register and purchase state coverage. It does not allow for self-insurance.

Workers’ compensation insurance normally protects an employer from potential liability in the case of worker injuries. However, if you work in one of the above four states, a gap insurance policy is necessary to give you the coverage you need.